Village of North Riverside Proposed Operating Budget Fiscal Year 2017 - 2018
Operating Revenues vs. Expenses General Fund Millions 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 2006 2008 2010 2012 2014 2016 2018 2020 Proposed Estimated Fiscal Year Revenues Expenditures
General Operating Revenues FY17 Projection Licenses & Permits Intergovernmental 5.2% 5.0% Charges for Services 3.1% Recreation Fees 4.0% Fines 14.4% Taxes 67.3% Miscellaneous 1.0%
General Operating Revenues FY18 Proposed Budget Licenses & Permits 5.0% Intergovernmental 5.2% Charges for Services 2.9% Recreation Fees 3.6% Fines 15.6% Taxes 67.1% Miscellaneous 0.6%
Breakdown of Taxes General Fund Millions 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Projected Proposed Sales Property Places for Eating Utility Telecommunications Amusement Video Gaming
Breakdown of Fines General Fund Millions 3.0 2.5 2.0 1.5 1.0 $1.8 $1.7 $1.7 $1.5 0.5 $0.0 $0.0 0.0 2013 2014 2015 2016 2017 Projected 2018 Proposed Red Light Admin Tow Circuit Court Tickets LDRP Adjudication Collections Misc
Sales Tax Revenue 10 Year History Millions 10 9 8 $4.0 $4.1 $4.0 $3.8 7 $3.7 $3.5 $3.5 $3.4 $3.5 $3.4 6 5 4 3 $5.7 $5.7 $5.6 $5.3 $4.8 $4.7 $4.6 $4.6 $4.5 $4.3 2 1 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Projected Proposed MT Sales NHMR Sales
General Operating Expenses by Class FY18 Proposed Budget Civic & Recreation Contractual Services Programs 7.0% 1.7% Commodities 2.0% Operational Costs 6.5% Capital Outlay 2.0% Personal Services 71.3% Internal Allocations 9.5%
Operating Revenues vs. Expenses Water Fund Millions 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 2006 2008 2010 2012 2014 2016 2018 2020 Proposed Estimated Fiscal Year Revenues Expenditures Series1 Series2
Gallons Water Purchased vs. Billed Water Fund millions 400 375 372 350 356 351 343 342 337 324 315 300 309 301 286 286 250 255 241 241 240 237 230 229 225 218 216 217 214 200 213 211 210 201 199 150 100 50 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Series1 Series2 Gallons Purchased Gallons Billed
FY17 Revenue Trends • Sales tax trending downward since Aug 2016 – MT sales tax projected reduction 1.8% – NHMR sales tax projected reduction 2.5% • State-Shared tax revenues showing consistent reductions – LGDF (Local Government Distributive Fund) showing large fluctuations from past years • Income tax collections 11.3% lower – Individual rate 3.75%; corporate rate 5.25% – 8% of net collections rec’d from individuals, trusts and estates – 9.14% of net collections rec’d from C -Corporations – State share of income tax » SFY13 - $1.20 million ($93.80 per capita) » SFY14 - $1.22 million ($95.34 per capita) » SFY15 - $1.32 million ($102.57 per capita) » SFY16 - $1.30 million ($101.36 per capita) » SFY17 - $0.95 million ($74.38 per capita) lowest since 2005
FY17 Revenue Trends • State-Shared revenues (continued) • Corporate PPRT (CPPRT) grew by 19.5% • IDOR notifies taxing agencies of gross error in April, 2016 – Affecting individual income tax (IIT), corporate income tax (CIT), and corporate PPRT (CPPRT) tax returns – $168 million overpaid to local governments and counties » NR portion $5,586 – $100 million CPPRT funds diverted in FY17 to support community colleges and K-12 education – $70 million CPPRT funds scheduled to be diverted in 2018 – CPPRT over-allocation resulted in LGDF distributions being understated in FY15 & FY16 • Local use tax anticipated to grow 5% – Increase driven primarily from Amazon collecting use tax starting in Feb 2015 – Strong growth in on-line sales – High consumer spending
FY17 Revenue Trends • Property tax collections 99% of levy – Highest collection rate since 2008 • Building activity flat – 2% vacancy rate in North Riverside Park Mall • Health inspection fees continue to support operational costs • Video gaming revenue grew 31% over 2016 – 10 gaming establishments (48 machines) as of April 2017
FY17 Revenue Trends • Recreation fees continue to exceed budget estimates – Increased $62,000 (10%) over original budget estimates – 3 rd straight year of strong enrollment numbers • Fine revenue grew 22% over 2016 – Red light ticket fines grew 14% • $1.5 million 2016 • $1.7 million 2017 – Strong collection efforts on unpaid outstanding tickets through State LDRP Program • $101,000 2016 • $359,000 2017
2017-18 Budget Environment • State budget crisis – Illinois running annual deficits since early 2000’s – Third consecutive year state budget not approved – Illinois lowest bond rating among states – Unfunded pension liabilities in excess of $130 billion – Unfunded state employee retiree health insurance liabilities of $56.4 billion – Record unpaid backlog of state bills totaling $14.5 billion
FY18 Revenue Assumptions • Sales Tax – 3% growth anticipated over prior fiscal year – Additional sales tax revenue over prior year • McCarthy Ford – Little new businesses growth anticipated for FY18 – Continued sales tax loss from Sports Authority & HH Gregg
FY18 Revenue Assumptions • State Shared Revenues – Income Tax (LGDF) • Currently safe from State budget cuts • Municipalities receive 8% of income tax money • FY18 projection is $101.00 per capita • Conservative projections due to IDOR reporting error • CIT base normalizes and 0% economic growth • IIT receipts grow at 3.8% – Local Use Tax • FY18 projection is $25.30 per capita • Expected growth to slow over prior fiscal year • Expected higher consumer spending and strong on-line sales
FY18 Revenue Assumptions • State Shared Revenues – PPRT (Personal Property Replacement Tax) • FY16 revenue reduced approximately $6,000 due to state calculation error • Only municipalities who collected personal property tax in 1977 are eligible for distribution • General Assembly has history of sweeping funds to pay for expenses that come out of state’s general revenue fund • FY18 baseline Corporate PPRT of $1,225 million – Base CPPRT revenue $1,215 million – $0 refund transfers to CPPRT fund – $70 million transfer out to fund education
FY18 Revenue Assumptions • State Shared Revenues – Motor Fuel Tax Funds • FY18 projection remains flat at $25.75 per capita • Assumes no further sweep of funds in FY18 • Assumes gasoline prices will remain below $4/gallon causing a modest increase in demand • Modest consumption growth to be offset by new purchases of more fuel efficient vehicles • Still a concern Governor’s FY18 budget will call for additional sweep of funds
FY18 Revenue Assumptions • Places for Eating Tax – 2% tax on all eating establishments • Currently 48 active restaurants in North Riverside • Anticipated growth – 1-2 new restaurants • Amusement Tax – 5% gross sales • Additional collections due to tax increase effective entire FY • Additional amusement tax use opening during FY • Building Permits – Flat construction growth expected
FY18 Revenue Assumptions • Telecommunication Tax – Anticipated to remain flat compared prior fiscal year • Video gaming tax – Estimated 2 new gaming establishments during FY18 – Projected $40,000 increase (22%) • Red light violations – Active cameras • Southbound Harlem at Cermak (live May, 2014) • Eastbound Cermak at Harlem (live March, 2015) • Northbound 17 th at Cermak (live Nov, 2015) – 60/40 revenue split – Aggressive collection of outstanding unpaid tickets
FY18 Revenue Assumptions • Water User Fees – City of Chicago water rate • $.07 (1.83%) increase June 1, 2017 – BNRWC water rate • $.14 (2.83%) increase June 1, 2017 – 1 st of 7 $.08 increases to cover repayment of 20 year EPA loan – Recommending water rate increase effective 8/17 TBD • Grants – Cook County grant • $114,000 1 st Avenue Bike Path – Phase II (carry over) – Federal grant • $82,700 Air Pack Grant – State grant • $105,000 DCEO Grant
FY18 Expenditure Assumptions • Wage assumptions – 2.50% Non-Union (effective 5/1/17) – 2.50% Union TC’s (effective 11/30/17) – 2.50% Union Police (effective 5/1/17) • MICA Insurance Pool – Self insured coverage for WC, property & liability ins – Premium based on 4 year claim history and risk exposure – 1 st premium reduction in over 5 years • 2015 - 45% increase ($170,841); 2016 - 10% increase ($60,000) • 2017 – 2.8% reduction ($17,143) • IPBC Pool – Self insured coverage for health & life insurance – Policy year July 1 st to June 30 th – Renewal increased 1.2%
FY18 Expenditure Assumptions • Contract services – Ambulance services (PSI) • 2.50% increase ($12,000) – Refuse Collection (Roy Strom) • Adjusts August 1 st annually • CPI Adjustment with minimum 2.85% annually – Building Inspector Fees • Status quo • Motor Fuel Tax Fund – Regular MFT program ($180,000) – Final IDOT payments to close out projects • Village wide bike path ($52,500) • DesPlaines Avenue Streetscape Project ($26,500)
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